Annual Accounts 2014 Advancing health and ability - Netherlands Leprosy Relief

 
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Annual Accounts 2014 Advancing health and ability - Netherlands Leprosy Relief
Annual Accounts
            2014
             Advancing health
                   and ability
Supervisory Board and Excecutive Director

                                                                               Supervisory Board 2014

                                                                                                                                                    From             End of term

                                                                               CHAIR
                    Contents                                                   Drs. M.J. van den Berg                                          14-12-2007             31-12-2015

                                                                               FINANCES; CHAIR FINANCIAL AUDIT COMMITTEE
                        Supervisory Board and Executive Director
                                                                               R.L.J. Greveling RA                                               1-1-2014             31-12-2017
                    I: Balance sheet as per December 31, 2014
                    II: Statement of Income and Expenses 2014                  INFORMATION AND FUNDRAISING; MEMBER FINANCIAL AUDIT COMMITTEE
                    III: Notes accompanying the annual account for 2014        C. van Dijl                                                       1-3-2006   23-5-2014 (prolonged)

                       a. General and accounting policies
                                                                               PERSONNEL & ORGANISATION
                       b. Notes to the Balance sheet 2014
                                                                               Drs. G.C. Anbeek                                                  1-1-2013             31-12-2016
                       c. Notes to the Statement of Income and Expenses 2014
                    IV: Other information                                      SCIENTIFIC RESEARCH
                        Independent auditor’s report                           Prof. Dr. P.R. Klatser                                           15-3-2013              14-3-2017

                    Annexes:
                                                                               PROJECTS AND HEALTH-CARE
                        Overview of countries with budget comparison
                                                                               Prof. Dr. J. van der Velden                                       1-5-2007              30-4-2015
                        Budget 2015
                        Multi Annual Strategy 2015-2017                        EXECUTIVE DIRECTOR
                                                                               J. van Berkel                                                     1-4-2009

2 NETHERLANDS LEPROSY RELIEF                                                                                                                                Annual Report 2014   3
Annual Account NLR 2014                                                                           Annual Account NLR 2014
I. Balance sheet as per December 31, 2014                                                         II. Statement of Income and Expenses 2014
Amounts x €1,000                                                                                  Amounts x €1,000

ASSETS                                      Notes       31 december 2014       31 december 2013   INCOME                                                  Notes   Realisation 2014   Budget 2014        Realisation 2013
Fixed assets                                                                                      Income from own fundraising                                8              4,956          5,300                  5,836
Tangible fixed assets                          1                     71                     84    Income from third-party campaigns                          9              2,865          2,573                  4,131
                                                                                                  Grants from governments and institutional donors          10              2,001          3,289                  1,894
Current assets                                                                                    Interest income and income from investments               11                360            50                      70
Receivables                                    2    2,524                  2,956                  Other income                                              12                  4             0                         0
Securities                                     3    6,079                  4,790                  Total income                                                            10,186         11,212                 11,931
Cash and cash equivalents                      4    3,622                  4,561
                                                                  12,225                 12,307    EXPENSES                                               Notes   Realisation 2014   Budget 2014        Realisation 2013
Total assets                                                     12,296                 12,391     Expenses on the objectives
                                                                                                  - Leprosy control and disability programme activities     13              7,547          8,598                  7,916
LIABILITIES                                                                                       - Coordination and medical advice                         13                847           764                     713
 Reserves and funds                            5                                                  - Information and awareness raising                       13                439           416                     532
 Reserves                                                                                                                                                                   8,833          9,778                  9,161
- Continuity reserve                                3,298                  3,298
- Earmarked reserves by board                       6,380                  6,430                   Expenses fundraising
                                                                                                  - Expenses own fundraising                                14              1,003           913                     934
Funds                                                                                             - Expenses on investments                                 15                 21            20                      17
- Earmarked fund Dutch Postcode Lottery              871                   1,010                                                                                            1,024           933                     951
                                                                  10,549                 10,738
Short-term liabilities                         6                   1,747                  1,653    Management and administration
Total liabilities                                                12,296                 12,391    - Expenses management and administration                  16                519           501                     513
                                                                                                                                                                              519           501                     513

                                                                                                   Total expenses                                                         10,376         11,212                 10,624

                                                                                                   Result income and expenses                                                (189)            0                   1.307

                                                                                                   END BALANCE                                                    Realisation 2014                      Realisation 2013
                                                                                                   Addition / Withdrawal from
                                                                                                  - Continuity reserve                                                          0                                  (200)
                                                                                                  - Earmarked reserves                                                        (50)                                  497
                                                                                                  - Earmarked fund Dutch Postcode Lottery                                    (139)                                1,010
                                                                                                                                                                            (189)                                1,307

4 NETHERLANDS LEPROSY RELIEF                                                                                                                                                                       Annual Report 2014   5
NLR Annual Account 2014                                                                                                         Investments                                                       Earmarked reserves
III. Accounting policies for the Annual Accounts                                                                                Investments are stated at market value. The other                 The earmarked reserve is the part of the reserve which is
                                                                Notes to the line items of the balance sheet and the            investments are valued at redemption value. Increase in           set aside by the Board for a specific purpose. The balance
a. General                                                      statement of income and expenses have been numbered in          value is added to the statement of income and expenses.           at year end is determined as the grand total, pursuant to
The annual accounts have been prepared on an historical         the financial statements.                                       Transaction costs are expensed in the statement of income         decisions of the Board earmarked contributions for the
cost basis of accounting.                                                                                                       and expenses.                                                     listed projects.
                                                                Comparison with prior year
Activities                                                      The principles of valuation and determination of result         Balances project funds and accounts                               Earmarked fund
NLR (Netherlands Leprosy Relief, in Dutch Leprastichting,       remain unchanged compared to prior year.                        This is a part of the total balance held at our field offices     Earmarked funds are funds received from a third party
Wibautstraat 137k, 1097 DN in Amsterdam) is committed                                                                           and projects at the end of the financial year. These are bank     for a specific purpose in the future year and therefore
to a world without leprosy and its consequences. The            Estimates                                                       balances, cashin- hand balances and other outstanding             earmarked.
objectives of the foundation are described in detail in the     In the application of the principles and guidelines for         receivables. Despite the fact that a part of these balances
annual report.                                                  preparation of the annual account NLR Management uses           are cash and bank accounts, it was decided to recognise the       Retirement system
                                                                different judgements and estimates that may be essential        total of projects and accounts under receivables. The extent      The current retirement system for Dutch employees within
Accounting period                                               for the amounts in the financial statements.                    of liquidity (for example the immediate availability) is on a     NLR is arranged by retirement Fund ‘Pensioenfonds Zorg en
The annual accounts have been drawn up by reference for         If for the needed insight according to Section 2:362 (1) of     different level than the cash equivalents of NLR on our bank      Welzijn’. The contributions and premiums are presented as
an accounting period of one year. The financial year is equal   the Dutch Civil Code necessary, the type of these opinions      accounts in de Netherlands.                                       liabilities in the year they relate to.
to the calendar year.                                           and estimates, including the associated assumptions
                                                                are mentioned in the notes to the relevant financial            Liabilities at our field offices and projects at the end of the   Accounting principles for determination of
Accounting policies for the valuation of                        statements.                                                     year are under the short term liabilities.                        results
assets and liabilities and the determination                                                                                                                                                      Revenue and expenses in the statement of income and
of the result                                                   Foreign currency                                                Cash and cash equivalents                                         expenses are allocated to the period in which they relate.
The annual accounts have been prepared in accordance            Transactions in foreign currency are converted to euro at       Cash and cash equivalents include cash, bank balances and         In determining the proportion a consistency concept
with Guideline 650 (Dutch: Richtlijn 650) for the Reporting     the exchange rate of the transaction date. At the end of        immediately accessible savings with a maturity of less then       is followed. The result is determined as the difference
of Fundraising Institutions (revised 2011), as published        the financial year all accounts receivable and liabilities in   twelve months.                                                    between income generated by contributions and others,
by the Dutch Accounting Standards Board (Raad voor de           foreign currency are converted to euro on the basis of the                                                                        and the costs and other charges for the year.
Jaarverslaggeving) in January 2012. All amounts in the          exchange rate as per balance date. Exchange rate results        Continuity reserve
annual accounts are in Euros or a multiple of 1,000 Euro,       have been added to the statement of income and expenses.        In accordance with the Supervisory Board’s resolution, a          Income is shown gross, before any deduction of associated
and are compared with the 2014 budget approved by the                                                                           continuity reserve has been formed. The continuity reserve        costs, unless otherwise is stated. Necessary costs to realise
Supervisory Board and the actual realisation of 2013.           Fixed assets                                                    has been drawn up to cover risks in the short-term to             certain benefits, are presented in the statement of income
                                                                Fixed assets and prepayments on tangible fixed assets           ensure that NLR can also meet its obligations in the future.      and expenses as expense.
The financial statements have been prepared in accordance       in the Netherlands are valued at purchase price minus           According to the conditions of the CBF certification and the
with the principle of continuity.                               cumulative depreciation. Fixed assets in programme              guideline of the Dutch Branch Organisation for Charities          Donations and gifts in kind
                                                                countries are expensed. Depreciation is on a straight-line      (VFI) the continuity reserve should not exceed a maximum          The income consists of the proceeds from contributions,
In general, assets and liabilities are stated at the amounts    basis, and based on the expected economic life, taking          of one and half times the yearly costs for operational            donations, grants and other income which are ascribed to
at which they were acquired or incurred, or current value.      account of the residual value.                                  activities. The continuity reserve is mutated with the            the financial year concerned. Donations are accounted for
If not specifically stated otherwise, they are recognised                                                                       surpluses or deficits from a calander year, after deduction       in the year of receipt. Donations and gifts in kind are valued
at the amounts at which they were acquired or incurred.         • Inventory and installations: 20 %                             of subsidies expenditures, donations to the earmarked             against fair value in the Netherlands.
The balance sheet and statement of income and expenses          • Hardware and software: 33 %                                   reserves and donations to provisions.
include references to the notes.

6 NETHERLANDS LEPROSY RELIEF                                                                                                                                                                                                             Annual Report 2014    7
b. Notes to the Balance sheet 2014
Legacies                                                      Related parties
Income from legacies are accounted for once the               As related party is considered every legal entity over         1. Tangible fixed assets
entitlement has been confirmed and reliably quantified and    which total control, joint control or significant influence
ultimate receipt of that amount has become reasonably         can be exerted. Statutory Board Members and other key         Tangible fixed assets are used for the main activities and entirely held for operational management.
certain. Advances are recognized in the year of receipt.      management members and their close relatives are also
                                                              considered related parties.                                                                                      Inventory/ systems   Hardware/ software         Total 2014            Total 2013
Employee benefits                                                                                                           PURCHASE VALUE                                              x €1,000              x €1,000          x €1,000              x €1,000
Wages, salaries and social security charges taken to the      Significant transactions with related parties are disclosed   Balance as at 1 January 2014                                     189                   96                285                   210
statement of income and expenses based on the terms of        in so far they are not transacted under normal market         Purchases                                                          7                    6                 13                    75
employment, where they are due to employees.                  conditions. Explained will be the nature and size of the      Balance as at 31 December 2014                                   196                  102                298                   285
                                                              transaction and other information necessary for giving
Interest paid and received                                    insight.                                                                                                         Inventory/ systems   Hardware/ software         Total 2014            Total 2013
Interest paid and received is recognised on a time-weighted                                                                 DEPRECIATION                                                x €1,000              x €1,000          x €1,000              x €1,000
basis, taking account of the effective interest rate of the                                                                 Balance as at 1 January 2014                                     112                   88                200                   170
assets and liabilities concerned. When recognising interest                                                                 Depreciation                                                      20                    7                 27                    30
paid, allowance is made for transaction costs on loans                                                                      Balance as at 31 December 2014                                   132                   95                227                   200
received as part of the calculation of effective interest.                                                                  Balance sheet value as at 31 December 2014                        64                    7                 71                    85
                                                                                                                            Insured value                                                    197                  105                302                   298

                                                                                                                            The purchase of inventory concerns the investment in the Amsterdam office. The investments involve the costs for replacement
                                                                                                                            of the airconditioning in the server room, adjustment and renovation costs of office space and the purchase of notebooks for staff.

                                                                                                                             2. Receivables
                                                                                                                                                                                                             31-dec-14                               31-dec-13
                                                                                                                                                                                                              x €1,000                                x €1,000
                                                                                                                            Balances project funds and accounts                                                  1,017                                     752
                                                                                                                            Legacies due                                                                         1,183                                   1,649
                                                                                                                            Interest savings accounts and investments                                             111                                       88
                                                                                                                            Paid in advance                                                                        71                                       93
                                                                                                                            Fundraising regional circles (in Dutch: Kringen)                                        0                                        9
                                                                                                                            Debtors                                                                                 9                                      154
                                                                                                                            Other accounts receivable                                                             134                                      422
                                                                                                                                                                                                                2,524                                   3,166

                                                                                                                            Provision for outstanding debts Nigeria                                                 0                                     (210)
                                                                                                                                                                                                                2,524                                   2,956

8 NETHERLANDS LEPROSY RELIEF                                                                                                                                                                                                            Annual Report 2014    9
Market value   Market value
Project funds and accounts balances relate to the balances held in our field offices and projects at the end of the financial year.                                                                                       Nominal value         purchase      31-dec-14
These balances consist of bank balances, cash balances and other outstanding receivables.                                             OVERVIEW BONDS AT 31 DECEMBER 2014                          Interest %   Redeemable     x €1,000          x €1,000       x €1,000
                                                                                                                                      NOVARTIS MTN 2009-2016                                           4,25       11-01-16            200             222            212
The legacies due are expected but not yet received income from legacies. Income from legacies is accounted for once the               NEDERLAND 2008-18                                                4,00       04-03-18            250             264            285
entitlement has been confirmed and reliably quantified and ultimate receipt of that amount has become reasonably certain.             FRANKRIJK 2006-2016                                              3,25       31-03-16            500             518            521
                                                                                                                                      FINLAND 2004-2015                                                4,25       04-03-15            400             437            409
In 2014 the average balance on the deposit accounts was higher than in 2013 leading to a higher amount of interest received in        FINLAND 2006-2017                                                3,88       31-03-17            200             213            221
2014. The development of the amount of interest from securities, received over the past 5 years is shown in note 11.                  RABOBANK MTN 2009-2019                                           5,88       15-03-19            250             283            300
                                                                                                                                      EUROPEAN UNION 2010-2019                                         3,38       10-05-15            300             299            343
The difference the balance of accounts receivables at year end can be explained for the larger part by the payment of an              LLOYDS TSB MTN 2010-2018                                         4,00       25-06-15            250             251            283
outstanding invoice in 2013 amounting €150,000 which has been paid in February 2014.                                                  STATOIL MTN 2009-2021                                            5,63       22-05-21            300             382            387
                                                                                                                                      EFSF MTN 2011-2016                                               2,75       05-04-16            100             102            104
The remaining other receivables concern reimbursements which are short term, and received in 2014. This leads to a lower
                                                                                                                                      DEUTSCHE BAHN FIN.2006-17                                        4,00       25-07-17            100             111            108
receivable at the end of the year compared to 2013.
                                                                                                                                      DAIMLER 2012-2020                                                1,75       02-12-20            150             150            159
                                                                                                                                      GERMANY INFL.LINK.2012-23                                        0,10       18-12-23            150             154            162
In 2012, a provision was made for amounts (as part of the other accounts receivable) that are owned to NLR by a number of
                                                                                                                                      SIEMENS FIN.MIJ.2012-2020                                        1,50       02-05-20            100             102            105
states in Nigeria from years before 2012. An action plan was made to retrieve as much of the outstanding debt as possible.
                                                                                                                                      IBM 2012-2019                                                    1,38       11-01-19            250             245            261
Actual execution of that plan however proved to be very difficult because necessary visits to the States were not possible due
                                                                                                                                      PROCTER & GAMBLE 2012-22                                         2,00       02-12-22            150             147            164
to the security situation in North Nigeria. We therefore decided to write off the total amount. In 2014 no provision for doubtful
debtors was included.                                                                                                                 BMW FINANCE 2012-2019                                            3,25       17-12-19            150             163            167
                                                                                                                                      DEUTSCHE BOERSE 2013-2018                                        1,13       24-06-18              50             51             51
All receivables are due within one year.                                                                                              3M CO 2013-2021                                                  1,88       02-12-21            150             148            162
                                                                                                                                      MCDONALD'S 2013-2023                                             2,00       17-12-23            100              95            108

 3. Securities                                                                                                                        VOLKSWAGEN INTL.FIN.13-16                                        1,00       02-05-16              50             50             51

                                                        31-dec-14                                   31-dec-13                         ABN AMRO 2013-2023                                               2,50       30-04-23            200             199            225
                                                         x €1,000                    %               x €1,000                    %    ESM 2013-2018                                                    1,25       30-04-18            200             203            209
Bonds                                                       5,638                   93%                 4,393                  92%    TOYOTA MOTOR 2013-2023                                           2,38       30-04-23            200             206            224
Other investments                                             381                    6%                  379                    8%    MICROSOFT 2013-2033                                              2,63       30-04-33            150             147            172
Balance of investment accounts                                    61                 1%                    18                   0%    TENNET 2011-2023                                                 4,63       06-05-23            100             119            126
                                                            6,079                  100%                4,790                 100%     ORACLE 2013-2025                                                 3,13       13-06-25            100             109            118
                                                                                                                                                                                                                                    5,100          5,371           5,638
The total security portfolio consists mainly fixed rate bonds with the exception of one share in a low risk stock fund. The
                                                                                                                                      GUARANTEE STRUCTURE (STOCKS WITH LOW RISK)
portfolio is valued at year end at market value. The difference in the result of bonds can be explained by the increase of
                                                                                                                                      RABO Eurostoxx 50 2010-17                                                  10-3-2017            350             350            381
investments in bonds. The increase in the balance of the investment account can be explained by interest received in the last
                                                                                                                                                                                                                                    5,450          5,721           6,019
three months of 2014.
                                                         Stocks           Bonds            Other      Investment-             Total
                                                                                     investments         accounts
                                                       x €1,000        x €1,000         x €1,000         x €1,000         x €1,000    All securities are administrated by an external agency since 2010. The mandate is in line with the NLR investment policy. NLR has a
                                                                                                                                      conservative and sustainable investment policy which emphasises on risk minimisation. All securities are freely available to NLR.
 Balance at 1 January 2014                                    0            4,393             379                18           4,790
 Plus: additions bought                                       0            1,479                0                0           1,479
                                                                                                                                      The revenues from the securities are classified under investment income. For an overview we refer to section 11 of the notes to
 Sold, redemptions and movements in balance                   0            (234)                2               43            (190)
                                                                                                                                      the statement of income and expenditure.
 Balance sheet value at 31 December 2014                      0           5,638              381                61           6,079

10 NETHERLANDS LEPROSY RELIEF                                                                                                                                                                                                                    Annual Report 2014    11
4. Cash and cash equivalents                                                                                                      General notes on reserves
Cash and cash equivalents are cash and bank balances in the Netherlands held by the NLR office in Amsterdam. NLR holds its
main current accounts at ING Bank. The cash and cash equivalents balance for the year ended 31 December 2013 is as follows:        Continuity reserve
                                                                                                                                   A continuity reserve has been formed to cover risks in the continuity of the organisation and to ensure that the organisation
                                                                                2014                                       2013    can meet its obligations in the future. Therefore, this reserve is meant to guarantee the organisation’s continuity. According
                                                                             x €1,000                                  x €1,000    to the guidelines of the Dutch Central Bureau for Fundraising (CBF) there is a maximum to this reserve of 1.5 times the yearly
Arrangement ING bank accounts                                                   2,012                                     2,954    costs of the work organisation, which translates in a maximum continuity reserve of €3.6 million. The continuity reserve is now
Other bankaccounts                                                              1,610                                     1,607    1.35 times the yearly costs of the work organsiation. NLR defines as costs of the work organisation: the personnel costs, rent
Cash in hand                                                                        0                                         1    of the Amsterdam office, other office and administration costs and fundraising costs. The continuity reserve is considered the
                                                                               3,622                                     4,561     resultant after calculation of the earmarked reserves.

                                                                                                                                   Earmarked reserves
Compared to previous year the composition of cash and cash equivalents has been changed. In 2014 we decided to invest              An earmarked reserve is part of the reserves set aside for a specific purpose that have been approved by the Board of Director
a large part of the cash and cash equivalents into our capital savings account at ING Bank. The transposition of our former        or funds that are tied to particular purposes by third parties. The notes below give an indication of the volume of earmarked
investment account into a capital savings account at Rabobank leads to an increase in the cash and cash equivalents. Currently     fund that are received and spent during the year.
about 55% of our cash in bank accounts are held at ING Bank and about 44% at Rabobank. Other cash in bank are spread over
Robeco and ABN AMRO. Interest income of cash and cash equivalents in 2014 is €32,000 (2013: €45,000) and is received on            Earmarked reserve for projects
the cash balances, based on the market rates. Due to the uncertain economic situation we decided to postpone the decision          This reserve consists of by Supervisory Board approved reserved amounts for specific projects the coming year. Since these are
to invest part of those cash and cash equivalents in securities. The bank balances are immediately claimable and can be quickly    conditional liabilities, these amounts are recorded in an earmarked reserve.
converted to cash as needed. For an overview of the investments income we refer to section 11 of the notes to the statement
of income and expenditure.                                                                                                                                                                                    31-12-2014                                31-12-2013
                                                                                                                                                                                                                x €1,000                                   x €1,000

 5. Reserves and funds                                                                                                             Allocated part of projects budget 2015 (31-dec-12: 2014)                        5,512                                     5,497
                                                                                                                                                                                                                  5,512                                      5,497
In accordance with the Dutch Accounting Standard for Fundraising Institutions (RJ 650) NLR’s equity is divided into reserves and
funds.                                                                                                                             Earmarked reserve for reorganisation and investment
                                            CONTINUITY          EARMARKED RESERVES             EARMARKED FUND             TOTAL    In December 2014 the adjusted financial policy framework has been approved by the Supervisory Board. Reserves should in
                                                                                                NPL These shoes                    principle only be used for investment in innovations and dealing with unexpected, incidental setbacks. In appropriate cases it
                                                                             Reorganisation        are made for                    can be decided to use a designated part of the reserves for necessary investments and/or financing phasing out scenarios.
                                               Reserve           Projects    and investment             walking
                                               x €1,000          x €1,000           x €1,000           x €1,000        x €1,000
 Balance as per 31 December 2013                  3,298             5,497               933               1,010          10,738    When making the decision to start working with a balanced budget from 2013 onwards, a reorganisation and investment
                                                                                                                                   reserve of €1 million was agreed upon by the Supervisory Board in July 2012. This amount was set aside for reorganisation and
 - Movements                                          0                 0                 0                  0                0
                                                                                                                                   investment costs. The balance of this reserve in 2013 was €933,000 at year-end. The remaining part of this reserve is partly
 - Withdrawels and additions                          0                15               (65)              (139)           (189)
                                                                                                                                   used in 2014 for investments in innovation and capacity building in Representative Offices, all in line with the acceleration
 Balance as per 31 December 2014                 3,298             5,512                868                871          10,549
                                                                                                                                   of decentralisation within NLR. This includes investment in capacity building for local institutional and non-institutional
                                                                                                                                   fundraising in programme countries. All in order to secure continuity of programmes in the coming years. This Investment
                                                                                                                                   Fund was used to a total spent amount of €238,000 in 2014 (2013: €269,000). Although these costs are not part of the regular
                                                                                                                                   operating budget for 2014, the costs had to be taken into account in the annual account as expenditure for 2014.

12 NETHERLANDS LEPROSY RELIEF                                                                                                                                                                                                               Annual Report 2014      13
Of the negative result of €189,000 in 2014, after withdrawals and additions to the earmarked fund and earmarked reserves, a                The item payable office expenditure primarily concerns turnover taxes, bank charges and audit fees. Also included are payable
surplus of €173,000 remained. The NLR Multi Annual Strategy states that investments in innovation will be financed outside                 holiday days and holiday allowance for Amsterdam staff. Disbursement of the holiday allowance will occur in May 2015. The
the annual balanced budgets, from NLR Reserves. This amount is therefore added to the existing Investment Reserve to make                  item staff pension costs concern the monthly employer costs for pensions at Pensioenfonds Zorg en Welzijn for the amount
future investments in innovation possible.                                                                                                 of €5,700. These invoices have been paid in the first quarter of 2015. The liabilities projects concern part of the outstanding
                                                                                                                                           amounts in our field offices and projects at the end of the financial year. This part consists of liabilities like amounts to be paid
Earmarked fund for project NPL These shoes are made for walking                                                                            to suppliers. Other amounts are for the largest part amounts that we have received in advance from several organisations for
In 2013 an amount from an extra drawing was awarded by the Dutch Postcode Lottery (NPL) for a special project in Southeast                 projects in 2015.
Asia: ‘These shoes are made for walking’, a combined three year project together with Liliane Foundation. The total amount
received was €2,016,016. About half of this amount was transferred to Liliane Foundation for the execution of their part of the             7. Commitments not included in the balance sheet
project. The NLR part that was not spend in 2013 has been formed into an earmarked fund. In 2014, an amount of €200,000
was received from Liliane Foundation from their earmarked fund. This amount was added to the NLR earmarked fund. From                      Head office in Amsterdam
the earmarked fund, programme activities were financed for a total amount of €339,000. In total, the earmarked fund was                    The head office of NLR is housed in the office building at Wibautstraat 135-137 in Amsterdam. The contract for a long term
decreased by €139,000.                                                                                                                     commitment is agreed until July 1, 2018, with an option for continuation for 5 years. The yearly rental amount, indexed each
                                                                                                                                           year, is currently €57,000 (excluding service costs) per year (2013: €65,000). Our copiers and printer are leased for a period of 5
The balance of the earmarked fund for These shoes project is as follows:                                                                   years until September 2019, with a yearly rent of €4,000.

                                                                               31-12-2014                                   31-12-2013     Rent in NLR Offices
                                                                                  x €1,000                                     x €1,000    The total yearly rent in NLR Representative Offices, all with a rental contract longer than one year, is €67,700 (2013: €67,700).
Earmarked fund of project These shoes are made for walking                             871                                        1,010
                                                                                      871                                        1,010     c. Notes to the Statement of Income and Expenses 2014
                                                                                                                                           Income
 6. Short-term liabilities
                                                                                                                                            8. Income from own fundraising
All current liabilities fall due in less than one year. The fair value of the current liabilities approximates the book value due to its                                                                       Realisation 2014             Budget 2014          Realisation 2013
short term character.                                                                                                                                                                                                  x €1,000                 x €1,000                x €1,000
                                                                                                                                           Face-to-face fundraising regional circles (in Dutch: Kringen)                     36                      50                         40
                                                                               31-12-2014                                   31-12-2013
                                                                                                                                           Contributions, (charitable) donations and gifts                                2,416                   2,695                    2,483
                                                                                  x €1,000                                     x €1,000
                                                                                                                                           Legacies                                                                       2,430                   2,500                    3,203
Payable project costs                                                                  959                                          673
                                                                                                                                           Sales of goods, Jan Jans comics                                                    2                      10                          7
Payable office expenditure                                                             121                                          133
                                                                                                                                           Other income from own fundraising received                                        72                      45                      103
Accounts payable/creditors                                                             155                                          136
                                                                                                                                                                                                                         4,956                    5,300                   5,836
Payroll taxes en social security contributions                                           0                                            3
Staff pension costs                                                                      6                                           15    The total income from own fundraising was 6% lower than budgeted. Compared to 2013, the total income from own
Liabilities projects                                                                   161                                          185    fundraising was 15% lower mainly due to lower income from legacies. The income from face-to-face fundraising slightly
Other amounts                                                                          345                                          507    decreased compared to 2013 and the budgeted amount due to the illness of volunteers and therefore a decline in door-to-
                                                                                                                                           door fundraising. Although an increase was budgeted, the income from contributions, (charitable) donations and gifts in
                                                                                     1,747                                        1,652
                                                                                                                                           2014 remained closer to the 2013 realisation level. A lower outcome was expected during the year, but a data analysis of our
                                                                                                                                           database resulted in an additional boost in the funds. The income from sale of goods concerns the revenues of two Dutch
Payable project costs are mainly amounts payable for scientific research in 2014, not yet formally invoiced by the researchers             comic books specialy written for NLR by famous Dutch cartoonist Jan Kruis, named: Jan Jans en de kinderen in Mozambique
concerned.                                                                                                                                 and Jan Jans en de kinderen in Suriname, a signed poster, and a birthday calendar.

14 NETHERLANDS LEPROSY RELIEF                                                                                                                                                                                                                              Annual Report 2014   15
The income from legacies totaled €2.4 million, which is 24% lower than in the previous year however only 3% lower than              The subdivision in contributions was different in 2013; then, a distiction was made between contributions from ILEP members
budgeted. To some extent the lower income compared to 2013 is due to the high valuation of receivable legacies at year end          and contributions from other organisations. Therefore, only the total amounts in the budget 2014 (€1,5 million), realisation
in 2013. The share of legacies in the total income from own fundraising in 2013 was 49% (2013: 55%). The average duration for       2014 (€ 1,2 million) and realisation 2013 (€765,000) can be directly compared.
the settlement of legacies is approximately 9 months. There are 9 legacies subject to usufruct. These legacies are not valued.
                                                                                                                                    10. Grants from governments and global organisations
9. Income from third-party campaigns
                                                                       Realisation 2014         Budget 2014      Realisation 2013   This item includes grants obtained from governments, including the European Union or similar international institutions,
                                                                              x €1,000             x €1,000              x €1,000   government agencies and public institutions.
Proceeds Dutch Postcode Lottery, regular draw                                    1,350                1,350                1,350
                                                                                                                                                                                                           Realisation 2014         Budget 2014       Realisation 2013
Extra project Dutch Postcode Lottery                                                 0                    0                2,016
                                                                                                                                                                                                                  x €1,000              x €1,000             x €1,000
Total income Dutch Postcode Lottery                                             1,350                1,350                 3,366
                                                                                                                                    GFATM                                                                            1,483                 1,800                1,527
                                                                                                                                    KNCV/USAID                                                                         518                  242                   367
Contributions ILEP-members                                                         844                  595                  453
                                                                                                                                    Unspecified income Institutional Funding                                             0                 1,247                       0
Contibutions by other organisations                                                672                  628                  312
                                                                                                                                                                                                                     2,001                 3,289                1,894
Total income from third-party campaigns                                         2,865                2,573                 4,131

                                                                                                                                    GFATM
Income from the Dutch Postcode Lottery                                                                                              Contributions from GFATM (The Global Fund To Fight AIDS, Tuberculosis and Malaria) for tuberculosis activities and program in
According to the contract 2011-2015 between NLR and the Dutch Postcode Lottery (in Dutch: Nationale Postcode Loterij), in           Nigeria. The expenses financed from these contributions are for the same amount included in the project expenditures for 2014.
the first quarter of 2014 an amount of €1,350,000 was received from the lottery revenues of 2013. In 2013 an extra amount
to finance a three year project in Southeast Asia: ‘These shoes are made for walking’, for the total of €2,016,016. In 2014 no      USAID
additional extra amount was granted.                                                                                                Involves contributions from USAID (U.S. Agency for International Development) for tuberculosis activities in Nigeria (via KNCV
                                                                                                                                    Tuberculosis Foundation). The expenses financed from these contributions are for the same amount included in the project
Contributions research and supporting projects                                                                                      expenditures for 2014.
Mainly contributions from other organisations within the ILEP (the International Federation of Anti-Leprosy Associations) to
several research and supporting projects of NLR. These are agreed as per each year. For 2014 we received contributions from         Unspecified income Institutional Funding
the American Leprosy Mission (ALM), Deutsche Lepra- und Tuberkulosehilfe (DAHW), The Leprosy Mission Canada/Effect Hope,            In the budget for 2014 a target was included of €1 million income from Institutional Funding. The same amount was included
The Leprosy Mission Ireland, LEPRA Health in action (UK), Fondation Raoul Follereau, FAIRMED Switzerland, Fontilles Spain,          in the expenses on the objectives. In the realisation this income is however specified under contributions for research or field
Secours aux Lépreux - Leprosy Relief Canada and Damien Foundation Belgium. Also, the contribution from Novartis Foundation          projects, mainly the contribution from Novartis Foundation for the LPEP research project (€444,451).
for the LPEP project was included.
                                                                                                                                    Excluding the unspecified income from Institutional Funding, the total revenue from government grants and grants from similar
Contributions field activities                                                                                                      organisations are 5% higher than 2013 and 2% lower than budgeted.
The contributions for field activities include donations from the Peerke Donders Stichting for projects in the Mekong Region
(€34,416), Stichting Light for the World (€77,250) for a project in Nigeria, Stichting Eureko Achmea Foundation (€22,920) for
projects in Vietnam, Dutch Mennonite Mission (Doopsgezinde Zending ) (€9,993) for projects in Indonesia, ALM (€ 30,610)
for projects in Indonesia, Christian Blind Mission (€12,000) for DCID Journal and Sasakawa Memorial Health Foundation for
projects in Vietnam (€42,685). Also included is the amount from Liliane Foundation of €200,000 for the NPL funded project
‘These shoes are made for walking’ (added to the earmarked fund for this project), and € 86,053 from Liliane Foundation for
activities by the Mekong Regional Coordation Team, for which the NLR Representative Office in Hanoi functions as a legal host
and facilitator. Finally the contibutions made to RCT projects outside Vietnam (€95,286) are included; the expenses financed
from these contributions are for the same amount included in the project expenditures for 2014.

16 NETHERLANDS LEPROSY RELIEF                                                                                                                                                                                                                 Annual Report 2014    17
11. Interest income and income from investments
This item includes interest and other income from bonds, as well as interest earned on the bank accounts and currency                    Overview securities sold in 2014
gains/losses.                                                                                                                                                                                                                              Appreciation            Sale value
                                                                      Realisation 2014         Budget 2014            Realisation 2013   REDEMPTIONS                                                 Interest%            Redeemable           x €1,000             x €1,000

                                                                              x €1,000              x €1,000                 x €1,000    SWEDBANK MTN 2009-2014                                           3,375               27-05-14             253                   250

Dividends, interest and rental income*                                              152                  50                       149    FINLAND 2004-2015                                                4,250               20-02-14             159                   158

Gain/(loss) value securities (unrealised)*                                          180                   0                       (96)                                                                                                             412                   408
Gain/(loss) on sales securities*                                                     (4)                  0                       (28)
Interest income from cash and cash equivalents                                       32                   0                        46    Realised gain/(loss) (difference between market value and valuation):                                      (4)

Total gross income related to investments                                           360                  50                        70
                                                                                                                                         12. Other income
Investments costs                                                                   (21)                (20)                      (17)                                                                            Realisation 2014       Budget 2014         Realisation 2013
Total net income from security investments                                          339                  30                        53                                                                                    x €1,000           x €1,000                x €1,000
                                                                                                                                         Other income                                                                           4                  0                        0
The total income from investments were far higher than estimated and compared to 2013 due to the increase in market value                                                                                                       4                  0                        0
at year-end. The interest income from cash and cash equivalents concern the interest received from bank balances at year-end
and were higher than 2013 due to more cash and cash equivalents. The development of the amount of interest received over
the past five years is shown below. The realised interest per year is also shown.                                                        In the budget 2014 a total amount of €1,17 million was taken as other income. In this annual report this amount is reclassified
The yield on the portfolio including investment accounts (amounts above marked with *) is 5.5% for 2014 of the average                   under income from thirdparty campaigns (contributions research and supporting projects and contributions field activities).
outstanding amounts (2013: 0.2%).                                                                                                        Please refer to note 9 of the income from third-party campaigns.

Multi-annual overview securities 2008-2014                                                                                               Expenses
INCOME FROM SECURITIES (x €1,000)                           2010            2011            2012               2013              2014    In some places below so called charged support costs are mentioned. These costs are the result of the Guidelines for Reporting
Interest received on bonds                                   288             287             207                149               152    Fundraising (RJ650). They are charges of general costs such as personnel costs, housing and office and other general expenses.
Dividend                                                       11              0               0                  0                 0    These costs are described and specified in section 18.
Realized gains or losses on value securities                  (4)             66              (2)              (28)                (4)
Unrealized gains or losses on value securities               (14)             (3)            161               (96)               180
Gross income from investments                                281             350             366                 24               328
Investments costs                                              26             23              20               (17)               (21)
Net result securities                                        255             327             346                 7               307

Yield on investments                                        2.9%            4.1%            5.7%               0.2%              5.5%
 Average yield 2010-2014 %: 5.5%
 Average yield 2010-2014 amount: (259)
Net result cash and cash equivalents                           16              4               4                46                 32

The current portfolio is managed by an external agency. The investment manager selects the bonds and shares. Investments
are in line with the NLR investment policy which prescribes investments in sustainable, socially responsible and low risk bonds.
This is screened periodically.

18 NETHERLANDS LEPROSY RELIEF                                                                                                                                                                                                                          Annual Report 2014   19
13. Expenses on the objectives                                                                                                        extension. NLR receives ongoing advice and support from the leprosy and disability consultants of KIT. The expenses are lower
NLR distinguishes between activities for the objectives: leprosy control and disability project activities, coordination & medical    however, because one consultant is now on the payroll of NLR.
advise and information & awareness raising. The costs within these main activities can again be divided into direct costs and         The increase in the charged support costs is mainly caused by higher staff costs, see note 18.
support costs.
                                                                                                                                                                                                             Realisation 2014          Budget 2014     Realisation 2013
                                                                                                                                      C: INFORMATION AND AWARENESS RAISING                                           x €1,000             x €1,000             x €1,000
For the country overview with budget comparison of carried out leprosy projects in 2014 see the relevant annex.
                                                                                                                                      Media costs                                                                          55                   31                    87

                                                                        Realisation 2014         Budget 2014       Realisation 2013   Information campaigns                                                                13                   15                     5
A: LEPROSY CONTROL AND DISABILITY PROGRAMME ACTIVITIES                          x €1,000            x €1,000               x €1,000   Promotion, Public Relations                                                          34                   49                    71
Field programmes excluding support costs                                          4,361                 4,434                5,130    Information costs newsletter (in Dutch: De Klepper)                                 100                  130                 128
GFATM: Nigeria TB program                                                         1,483                 1,800                1,527    Charged support costs (see specification expenses to destination)                   236                  191                 241
KNCV/ USAID: Nigeria TB CARE and TB REACH                                           518                  242                   367                                                                                       439                   416                532
Research projects                                                                   877                  903                   571
Supporting projects                                                                 193                   78                   244    In 2012 a start was made to develop a new corporate identity. This has come to realisation in 2013, and continued in 2014 with
Project expenditure unspecified institutional funding projects                        0                 1,034                    0    specific media campaigns aimed at awareness raising. The total amount of the information and awareness raising expenditure
Budgetary margins                                                                     0                   25                     0    was slightly higher than budgeted due to higher support costs but 17% lower than in 2013.
Charged support costs (see specification expenses to destination)                   115                   83                    77
                                                                                 7,547                 8,598                 7,916    Budgetary margins                                                                     -                   25                     -
                                                                                                                                      Total expenses on the objectives (A+B+C)                                         8,833                9,803               9,161
The expenses on field programmes are slightly (1,6%) lower than budgeted and 15% lower than 2013. GFATM is lower, but
KNCV/USAID higher than budgeted and in combination on target. Research projects are 3% below budget but 54% higher than
2013, mainly due to the LPEP project. Expenses on supporting projects are higher than budgeted, because some costs that               Expenses on the objectives as percentage of total income and total expenses
were in fact financed outside the budget from the investment reserve have to be taken into the realisation 2014. For more             The following is the ratio of total expenses on the objectives in relation to total income and total expenses.
information see the Country Overview.
                                                                                                                                                                                                             Realisation 2014          Budget 2014     Realisation 2013
                                                                                                                                                                                                                     x €1,000             x €1,000             x €1,000
Project expenditure unspecified institutional funding projects
In the budget for 2014 a target was included of €1 million income from Institutional Funding. The same amount was included as         Total expenses on the objectives                                                  8,833                9,803               9,161

a seperate post in the expenses on the objectives. The realisation however, mainly expenditure on the LPEP research project, is       Total income                                                                     10,186               11,212              11,931

taken under the heading research projects.                                                                                            Expenses as % of total income                                                    86.7%                87.4%               76.8%

                                                                        Realisation 2014         Budget 2014       Realisation 2013                                                                          Realisation 2014          Budget 2014     Realisation 2013
B: COORDINATION AND MEDICAL ADVISE                                              x €1,000            x €1,000               x €1,000                                                                                  x €1,000             x €1,000             x €1,000

ILEP, contribution in costs coordination                                             44                   45                    42    Total expenses on the objectives                                                  8,833                9,803               9,161

Leprosy unit KIT                                                                     90                  227                   186    Total expenses                                                                   10,376               11,212              10,624

Charged support costs (see specification expenses to destination)                   713                  492                   485    Expenses as % of total expenses                                                  85.1%                87.4%               86.2%
                                                                                   847                   764                  713
The costs of the coordinating secretariat of the ILEP is divided among the members.                                                   The expenses on the objectives expressed as a percentage of total income is slightly lower than budgeted. Both spending on
                                                                                                                                      the objectives and income are about €1 million lower than budgeted, mainly due to the target set for Institutional Funding that
NLR has a cooperation agreement with the Royal Tropical Institute (KIT, in Dutch: Koninklijk Instituut voor de Tropen) on             was not reached. Expressed as a percentage of the total expenses, the realisation of 2014 is also slightly lower than budgeted
technical project advice and guidance by medical experts. In 2014, the signing of the extension of the cooperation agreement          for 2014 and realised in 2013.
between the KIT and NLR took place. This agreement is for the period February 2014-December 2016 with an option for

20 NETHERLANDS LEPROSY RELIEF                                                                                                                                                                                                                    Annual Report 2014   21
14. Expenses own Fundraising                                                                                                         16. Expenses Management and Administration
The composition of our fundraising expenditure is shown below.                                                                       Expenses on Management and Administration involves costs that the organisation makes in the context of the (internal)
                                                                                                                                     management, administration and control and that are not allocated to the objectives or fundraising. The management and
                                                                        Realisation 2014            Budget 2014   Realisation 2013   administration costs are allocated in accordance with the guidelines of the Dutch Association of Fundraising Organisations
                                                                                x €1,000               x €1,000           x €1,000
                                                                                                                                     (VFI). The salary costs for the director and management support staff, and for the Finance and Administration department are
Costs newsletter (in Dutch: De Klepper) and CRM                                     159                    181                177    allocated to management and administration in their entirety.
Media costs                                                                           4                     15                   9
Fundraising direct costs                                                            627                    526                562                                                                          Realisation 2014         Budget 2014      Realisation 2013
Charged support costs (see specification expenses to destination)                   213                    191                185                                                                                  x €1,000            x €1,000              x €1,000

                                                                                 1,003                     913               933     Audit expenses (PwC)                                                               32                   30                    31
                                                                                                                                     Personnel costs M&A                                                               406                  404                  388

As planned in 2014 more was invested in own fundraising compared to 2013 because the fundraising market remains                      Housing expenses                                                                   21                   22                    35
challenging. In response to further decreasing income, a thorough analysis (data crunch) of the donor database resulted in           Office- and general costs                                                          54                   31                    50
identification of extra opportunities to raise new donors. Extra campaigns to materialise these opportunities increased direct       Depreciation and interest                                                           6                   14                     9
costs, and extra income. Due to this, the total amount of the fundraising expenditure was 10% higher than budgeted.                                                                                                   519                   501                  513

Expenses own fundraising as a percentage of income own fundraising                                                                   Due to higher office- and general costs, the costs of management and administration turned out almost 6% higher than budgeted.
The following is the ratio of fundraising costs in relation to total income from own fundraising.                                    The increase in the office expenses is caused by the purchase and implementation of a new financial software package. The new
                                                                                                                                     software will be deployed early 2015 in the head office in Amsterdam. Afterward our seven regional offices will also follow this
                                                                        Realisation 2014            Budget 2014   Realisation 2013   implementation of the new software. These new developments will optimise the internal work processes of NLR.
                                                                                x €1,000               x €1,000           x €1,000
Total expenses own fundraising                                                    1,003                    913                934    The allocation of specific expenses to management and administration expenses is as follows:
Total income own fundraising                                                      4,956                   5,300             5,836
Expenses as % of income own fundraising                                          20.2%                   17.2%             16.0%     Audit expenses:                                            100%

The Dutch Central Bureau of Fundraising (CBF) sets a standard of maximum 25% of the income generated by own fundraising,             Costs staff head office:
which can be spent on own fundraising. In 2014 the fundraising expenses were 20.2% of the funds raised (see above). This             - Director                                                 100%
puts NLR well under the maximum of 25% set by the CBF. NLR strives to keep the costs of its own fundraising under 21% of the         - Management assistent                                     100%
income out of its own fundraising. The lower percentage in 2013 (16%) is explained by the lower costs in 2013 and also by the        - Finance and Administration department                    100%
higher income, mainly from legacies in that year.
                                                                                                                                     Housing costs:                                             Based on office area used
15. Expenses on investment                                                                                                                                                                      management and finance and administration department
                                                                        Realisation 2014            Budget 2014   Realisation 2013
                                                                                x €1,000               x €1,000           x €1,000   Office- and general costs:                                 Based on number of fte’s
Bank charges /all-in tariff                                                          21                     20                 17                                                               management and finance and administration department
                                                                                     21                     20                 17
                                                                                                                                     Depreciations:                                             Based on number of fte’s
The expenses on investment comprises the all-in fee for the administration and handling of securities. The actual expenses                                                                      management and finance and administration department
in 2014 were €20,872 (2013: €16,683) and higher than previous year and estimated due to more activities on the investment
market.

22 NETHERLANDS LEPROSY RELIEF                                                                                                                                                                                                                 Annual Report 2014   23
Expenses Management and Administration as a percentage of total expenses                                                            Office and general expenses: allocation based on number of FTEs
The following is the expenses on Management and Administration in relation to the total expenses.                                   - Director and Management assistent                                                        Management and Administration
                                                                                                                                    - Finance and Administration department                                                    Management and Administration
                                                                       Realisation 2014          Budget 2014     Realisation 2013   - Fundraising and information & awareness raising dept.: Fundraising                       Fundraising
                                                                               x €1,000             x €1,000             x €1,000
                                                                                                                                    - Programme Department (including Infolep)                                                 Objective
Total expenses management and administration                                       519                  501                  513    - Fundraising and information & awareness raising dept.: Inform.& Awareness                Objective
Totaal expenses                                                                 10,376                11,212              10,624
Expenses as % of total expenses                                                  5.0%                  4.5%                 4.8%    Depreciation and interest: allocation based on number of FTEs
NLR is currently using as a standard for the expenses on Management and Administration 5 percent of the total expenses. This        - Director and Management assistent                                                        Management and Administration
is a percentage that makes a good functioning of the managerial and administrative processes possible, while spending on the        - Finance and Administration department                                                    Management and Administration
objectives as much as possible. The high outcome this year is caused by the once off implementation costs for the new financial     - Fundraising and information & awareness raising dept.: Fundraising                       Fundraising
software package.                                                                                                                   - Programme Department (including Infolep)                                                 Objective
                                                                                                                                    - Fundraising and information & awareness raising dept.: Inform.& Awareness                Objective
17. Specification and division of expenses according to type and allocation
                                                                                                                                    Exception within this group are the investment costs, these are entirely allocated to fundraising.
In the summary: specification expenses to destination, all expenses are divided into various cost categories. Allocation of these
expenses to the three main target groups: objectives, fundraising income and management and administration is as follows:           18. Notes general costs (support costs before charging)

Direct costs are attributed directly. Information costs are costs which are aimed at promoting public support for the fight         Specification below involves the overall cost to the specification and allocation costs to destination: personnel costs, housing,
against leprosy; fundraising costs are focused on the acquisition of income. Where there is a joint information and fundraising     office and general expenses and depreciation and interest.
activity the costs are divided in a ratio of 50/50.
                                                                                                                                                                                                            Realisation 2014          Budget 2014      Realisation 2013
                                                                                                                                    STAFF COSTS BY DEPARTMENT                                                       x €1,000             x €1,000              x €1,000
Staff costs are allocated as follows:
- Director                                                                                100% Management and Administration        Director and managementassistent                                                    196                   196                  189

- Management assistent                                                                    100% Management and Administration        Finance and Administration department                                               211                   208                  199

- Finance and Administration department                                                   100% Management and Administration        Fundraising and information & awareness raising dept.: Fundraising                  161                   152                  129
- Fundraising and information & awareness raising dept.: Fundraising                      100% Fundraising                          Fundraising and information & awareness raising dept.: Inform.&
                                                                                                                                    Awareness                                                                           185                   152                  185
- Programme Department (including Infolep)                                                100% Objective
- Fundraising and information & awareness raising dept.: Inform.& Awareness               100% Objective                            Programme department                                                                570                   384                  332
                                                                                                                                    Infolep                                                                              84                    64                   50

Housing costs: allocation based on office area used                                                                                                                                                                  1,406                 1,156                 1,084
- Director and Management assistent                                                       Management and Administration
- Finance and Administration department                                                   Management and Administration             The total staff costs are 21% higher than budgeted and comprise 13% of the total expenses. The number of staff at head office
- Fundraising and information & awareness raising dept.: Fundraising                      Fundraising                               counted at 19.2 FTE (2013: 16.1 FTE), this was 3 FTE higher than budgeted which resulted in an increase in staff costs (please
- Programme Department (including Infolep)                                                Objective                                 refer to the specification of staff costs). The number of employees involved in scientific research, the Leprosy Research Initiative
- Fundraising and information & awareness raising dept.: Inform.& Awareness               Objective                                 (LRI) and as well as Technical Unit (TU) at head office increased, whilst the number of FTE in the other departments remained
                                                                                                                                    about the same. The growth in LRI and TU employees is caused by the increased volume of research projects which requires
                                                                                                                                    additional staff and changes in staff composition in the head office. Also, one former KIT consultant is now on the payroll of
                                                                                                                                    NLR. These extra staff costs are either compensated in the external project contributions for the projects concerned, or by
                                                                                                                                    lower expenses on (KIT)consultancy.

24 NETHERLANDS LEPROSY RELIEF                                                                                                                                                                                                                  Annual Report 2014       25
Realisation 2014         Budget 2014       Realisation 2013                                                                            Realisation 2014         Budget 2014      Realisation 2013
HOUSING COSTS                                                                x €1,000             x €1,000              x €1,000      DEPRECIATION                                                                   x €1,000            x €1,000              x €1,000

Rent including service charges                                                     72                   79                    96      Depreciation inventory, installations and computers                                 26                   53                    30

Cleaning costs                                                                     20                   19                    23                                                                                          26                   53                    30

Other accommodation costs                                                           2                     2                       2
Removal costs                                                                       0                     0                   37      Total general costs                                                             1,764                1,428                 1,471
                                                                                   94                  100                  158
                                                                                                                                      Specification staff costs
GENERAL COSTS                                                                                                                         In the specification above a breakdown of personnel costs by department is given. The following is a specification of the same
Costs Supervisory board                                                             4                     5                       0   costs but now divided into wages and salaries, social security charges, pension and other personnel costs. NLR has its own
ILEP meetings                                                                       5                     5                       3   employment regulations, salary structure and job classification. Salaries scales are generally indexed annually. NLR follows the
External advice                                                                    24                   14                    24      Dutch Centraal Bureau voor Statistiek (CBS) index, meaning a salary scale increase for 2014 of 1.2% compared to 2013.
Training                                                                            0                     0                       4
                                                                                                                                                                                                             Realisation 2014         Budget 2014      Realisation 2013
CBF, VFI and Partos                                                                21                   18                    24
                                                                                                                                                                                                                     x €1,000            x €1,000              x €1,000
Various insurance costs                                                             3                     4                       7
                                                                                                                                      Wages and salaries                                                               1,072                  894                  854
Legal support and advice                                                            1                   10                    12
                                                                                                                                      Social security costs                                                              159                  124                  112
                                                                                                                                      Pension contributions                                                              136                  114                    96
OFFICE COSTS
                                                                                                                                      Other personnel costs                                                               39                   24                    22
Office supplies                                                                     2                     4                       2
                                                                                                                                                                                                                      1,406                1,156                 1,084
Telephone / telex / fax / e-mail                                                    8                     4                       7
Photocopies                                                                         8                     2                       8
Postage                                                                            13                   10                    12
                                                                                                                                      AVERAGE NUMBER OF EMPLOYEES (IN FTE)                                   Realisation 2014         Budget 2014      Realisation 2013
Maintenance inventory                                                               1                     5                       1
                                                                                                                                      Director                                                                            1.0                 1.0                   1.0
Office ICT                                                                        107                   15                    30
                                                                                                                                      Managementassistent                                                                 0.8                 0.8                   0.8
Printed material                                                                    0                     5                       0
                                                                                                                                      Project department                                                                  7.4                 5.5                   5.1
Other office expenses                                                              29                   18                    39
                                                                                                                                      Fundraising and information & awareness raising department                          5.8                 4.6                   5.5
                                                                                  226                  119                  173
                                                                                                                                      Finance and Administration department                                               2.6                 2.6                   2.6
                                                                                                                                      Infolep                                                                             1.6                 1.2                   1.1
OTHER EXPENSES
                                                                                                                                      Number of FTEs                                                                    19.2                 15.7                 16.1
Other costs                                                                        11                     0                   26

                                                                                                                                       Number of head office employees on Dec. 31                                         22                   17                    18
The increase in the total office- and general costs can be explained by the high office ICT costs, caused by the implementation
costs of new financial software. This implementation is ultimately financed from the investment reserve but expenses have to
be taken in the annual expenses 2014.                                                                                                 The total number of staff members working at head office in Amsterdam was 22 at 31 December 2014 (2013: 18). In addition
                                                                                                                                      to the office staff, NLR has at December 31st 2014 5 expatriate staff (2013: 6). The total costs of these expatriate staff amount
                                                                                                                                      to €482,000 (2013: €470,000) and are included in the project expenses. They include salaries and social security costs €264,000
                                                                                                                                      (2013: €243,000) and pension contributions €51,000 (2013: €45,000). The pensions of NLR’s staff and expatriate staff are
                                                                                                                                      insured with Pensioenfonds Zorg en Welzijn and Zwitserleven.

26 NETHERLANDS LEPROSY RELIEF                                                                                                                                                                                                                   Annual Report 2014   27
Remuneration of the Executive Director                                                                                                 score is reviewed every three years. The relevant actual annual income of the Director for 2014 was €109,150 (1 FTE/12
The amounts and composition of the remuneration is shown in the table below:                                                           months) for Mr. J. van Berkel. This means that the remuneration of the Board of Directors falls within the scope defined in the
                                                                                                                                       guidelines of the Wijffels Code and within the standard defined by VFI.
NAME                                                                       J. van Berkel                              J. van Berkel
FUNCTION                                                              Executive Director                         Executive Director
                                                                                                                                       Remuneration Supervisory Board
                                                                                   2014                                       2013
                                                                                                                                       No remuneratrion was paid to the Supervisory Board members, and no loans, advances or guarantees were given. In 2014 and
                                                                                                                                       2013 no expenses were reimbursed.
EMPLOYMENT
Duration contract                                                            Indefinite                                 Indefinite
                                                                                                                                       Summary: specification expenses to destination
Hours/week                                                                           40                                           40
                                                                                                                                       The total and the breakdown of the expenses is as follows:
Parttime percentage                                                                 100                                        100
                                                                                                                                       Amounts x €1,000
Period                                                                        1/1-31/12                                  1/1-31/12
                                                                                                                                       DESTINATION                                                  OBJECTIVE
                                                                                                                                                                                                                        information
                                                                             Total 2014                                 Total 2013                                                  Programme        Coordination        Awareness
REMUNERATION IN EUR                                                            x €1,000                                   x €1,000     EXPENSES                                       activities    Medical advise           raising
Annual income                                                                                                                          Grants and contributions                           6,556                  0                0
- Gross wages/ salary                                                                97                                           97   Payments                                               0                  0                0
- Holiday allowance                                                                   8                                            8   Purchases and acquisitions                             0                  0                0
- End-of-year bonus                                                                   4                                            4   Outsources activities                                877               134                 0
- Variable annual income                                                              0                                            0   Publicity and communication                            0                 0               202
Total reward                                                                        109                                        109     Staff costs*                                          84               570               185
                                                                                                                                       Housing costs*                                         9                 36               12
                                                                                                                                       Office and genaral costs*                             19                 97               33
Social security charges (employer's contribution)                                     9                                            8   Depreciation and interest*                             2                 11                7
Taxable allowances/additions                                                          0                                            0   Total Expenses                                    7,548                847              439
Pension charges (employer's contribution)                                            15                                           14
Other remaining rewards                                                               0                                            0   DESTINATION                                                             INCOME FUNDRAISING
Benefits end of service                                                               0                                            0                                                      Own           Combined      Third-party
                                                                                                                                       EXPENSES                                     fundraising         campaigns      campaigns               Grants       Investments
Total other charges and compensations                                                24                                           22
                                                                                                                                       Grants and contributions                               0                 0                 0                 0                    0
                                                                                                                                       Payments                                               0                  0                0                 0                    0
Total remuneration                                                                  133                                        131
                                                                                                                                       Purchases and acquisitions                             0                  0                0                 0                    0
The Supervisory Board determines the remuneration policy, the amount of the Director’s income and the amounts of other                 Outsources activities                                  0                  0                0                 0                    0
elements of remuneration. The remuneration policy is updated periodically. NLR follows the Dutch VFI Advisory Regulations              Publicity and communication                          790                  0                0                 0                    0
for the Remenuration of Directors of Charities, in Dutch: Adviesregeling Beloning Directeuren van Goede Doelen and Code                Staff costs*                                         161                  0                0                 0                    0
Wijffels (ref.: www.vfi.nl).                                                                                                           Housing costs*                                        15                  0                0                 0                    0
The remuneration was revised by the Supervisory Board in 2014. It was concluded that the remuneration policy is still                  Office and genaral costs*                             33                  0                0                 0                    0
performed in accordance with the VFI Advisory regulation. The VFI Advisory regulation uses weight criteria to define the               Depreciation and interest*                             4                  0                0                 0                21
maximum standards for annual incomes. In the scheme the weight of Director’s function is measured on the basis of three                Total Expenses                                    1,003                  0                 0                0                 21
criteria; size, complexity and organisational context. The Supervisory Board calculated a total of 430 points (BSD-scores) this

28 NETHERLANDS LEPROSY RELIEF                                                                                                                                                                                                                   Annual Report 2014   29
DESTINATION                          MANAGEMENT & ADMINISTRATION
Grants and contributions                                               0
Payments                                                               0
Purchases and acquisitions                                             0
Outsources activities                                                 32
Publicity and communication                                            0
Staff costs*                                                         406
Housing costs*                                                        21
Office and genaral costs*                                             54
Depreciation and interest*                                             6
Total Expenses                                                       519

 DESTINATION                                                TOTALS
EXPENSES                                    Total 2014      Budget 2014        Total 2013
Grants and contributions                         6,556            8,516             7,288
Payments                                            0                  0                0
Purchases and acquisitions                          0                  0                0
Outsources activities                            1,043               302             809
Publicity and communication                       992                947            1,039
Staff costs*                                     1,406            1,156             1,085
Housing costs*                                     94                100             158
Office and genaral costs*                         237                118             199
Depreciation and interest*                         47                 73              46
Total Expenses                                 10,376           11,212            10,624

* See specification general costst as mentioned in the notes to the balance sheet and statement of income and expenses

30 NETHERLANDS LEPROSY RELIEF                                                                                            Annual Report 2014   31
Independent auditor’s report                                                                                                                                  Country overview
To the Supervisory and Management board of the Netherlands Leprosy Relief                                                                                     with budget comparison 2014

We have audited the accompanying financial statements 2014                        procedures that are appropriate in the circumstances, but not for                                                                                                 Discrepancy
of Netherlands Leprosy Relief, Amsterdam, which comprise                          the purpose of expressing an opinion on the effectiveness of the                                          Budget 2014   Allocation 2014   Realisation 2014   Budget-realisation           in % of
the balance sheet as at 31 December 2014, the statement                           foundation’s internal control. An audit also includes evaluating            AFRICA                                  €                 €                  €                    €       the budget
of income and expenditure for the year then ended and the                         the appropriateness of accounting policies used and the                     Madagascar                         56,000           56,000             56,685                  685
notes, comprising a summary of accounting policies and other                      reasonableness of accounting estimates made by management,                  Mozambique                        181,000          180,999            151,675             (29,325)
explanatory information.                                                          as well as evaluating the overall presentation of the financial
                                                                                                                                                              Nigeria                         3,049,842        2,995,515          2,830,119            (219,723)
                                                                                  statements.
Management’s responsibility                                                                                                                                   Total Africa                   3,286,842        3,232,514          3,038,479            (248,363)               -8%
Management is responsible for the preparation and fair                            We believe that the audit evidence we have obtained is sufficient
presentation of these financial statements in accordance with the                 and appropriate to provide a basis for our audit opinion.
                                                                                                                                                              SOUTH-AMERICA
Guideline for annual reporting 650 “Charity organisations” of the
Dutch Accounting Standards Board. Furthermore, management is                      Opinion                                                                     Brazil                            397,000          397,000            399,827                2,827
responsible for such internal control as it determines is necessary               In our opinion, the financial statements give a true and fair view          Total South-America              397,000          397,000            399,827                2,827                1%
to enable the preparation of the financial statements that are free               of the financial position of Netherlands Leprosy Relief as at
from material misstatement, whether due to fraud or error.                        31 December 2014, and of its result for the year then ended in
                                                                                                                                                              ASIA
                                                                                  accordance with the Guideline for annual reporting 650 “Charity
Auditor’s responsibility                                                          organisations” of the Dutch Accounting Standards Board.                      Myanmar                          120,000          169,754            158,910               38,910
Our responsibility is to express an opinion on these financial                                                                                                 China                                 0            15,008             15,085               15,085
statements based on our audit. We conducted our audit in                          Announcement according to the                                                Cambodia                          56,000          170,162            114,554               58,554
accordance with Dutch law, including the Dutch Standards on                       management report
Auditing. This requires that we comply with ethical requirements                  We have read the management report in order to identify material             Indonesia                      1,402,000        1,417,811          1,199,702            (202,298)
and plan and perform the audit to obtain reasonable assurance                     inconsistencies, if any, with the audited financial statements.              India                            434,000          433,976            413,575             (20,425)
about whether the financial statements are free from material                     Based on reading the management report we established that the               Laos                              39,000            2,477              2,375             (36,625)
misstatement.                                                                     management report is consistent with the information in the
                                                                                                                                                               Nepal                            292,000          292,157            309,713               17,713
                                                                                  financial statements and that the management report contains all
An audit involves performing procedures to obtain audit evidence                  information required by Guideline for annual reporting 650                   Thailand                          32,000           52,710             42,972               10,972
about the amounts and disclosures in the financial statements.                    “Charity Organisations” of the Dutch Accounting Standards                    Vietnam                          417,000          766,741            668,192              251,192
The procedures selected depend on the auditor’s judgment,                         Board. We have not audited or reviewed the information in the
                                                                                                                                                              Total Asia                     2,792,000        3,320,796          2,925,078              133,078                5%
including the assessment of the risks of material misstatement                    management report.
of the financial statements, whether due to fraud or error. In
making those risk assessments, the auditor considers internal                     Amsterdam, 29 May 2015                                                      1. Total field programmes       6,475,842        6,950,310          6,363,384            (112,458)               -2%
control relevant to the foundation’s preparation and fair                         PricewaterhouseCoopers Accountants N.V.
                                                                                                                                                              2. Supporting projects            159,900           33,041            307,698              147,798              92%
presentation of the financial statements in order to design audit                 Original signed by drs. J.L. Sebel RA
                                                                                                                                                              3. Research projects              902,910          671,271            876,713             (26,197)               -3%
                                                                                                                                                              4. Budgetary margins               25,000                                                 (25,000)
                                                                                                                                                              Subtotal                       7,563,652        7,654,622          7,547,795             (15,857)                0%
PricewaterhouseCoopers Accountants N.V., Thomas R. Malthusstraat 5, 1066 JR Amsterdam, P.O. Box 90357,
1006 BJ Amsterdam, The Netherlands
T: +31 (0) 88 792 00 20, F: +31 (0) 88 792 96 40, www.pwc.nl                                                                                                  TOTAL                          7,563,652        7,654,622          7,547,795             (15,857)                0%

‘PwC’ is the brand under which PricewaterhouseCoopers Accountants N.V. (Chamber of Commerce 34180285), PricewaterhouseCoopers Belastingadviseurs N.V.
(Chamber of Commerce 34180284), PricewaterhouseCoopers Advisory N.V. (Chamber of Commerce 34180287), PricewaterhouseCoopers Compliance Services
B.V. (Chamber of Commerce 51414406), PricewaterhouseCoopers Pensions, Actuarial & Insurance Services B.V. (Chamber of Commerce 54226368),
PricewaterhouseCoopers B.V. (Chamber of Commerce 34180289) and other companies operate and provide services. These services are governed by General
Terms and Conditions (‘algemene voorwaarden’), which include provisions regarding our liability. Purchases by these companies are governed by General Terms
and Conditions of Purchase (‘algemene inkoopvoorwaarden’). At www.pwc.nl more detailed information on these companies is available, including these General
Terms and Conditions and the General Terms and Conditions of Purchase, which have also been filed at the Amsterdam Chamber of Commerce.

32 NETHERLANDS LEPROSY RELIEF                                                                                                                                                                                                                                Annual Report 2014   33
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